Investment Shares

Alterna Class A Investment Shares, Series 5

There’s no better investment.

Alterna’s Class A Investment Shares, Series 5 are a unique and exclusive investment opportunity for Alterna Savings Ontario Resident Members only. These shares are a low-risk investment that offer a great rate of return. Each share is worth one Canadian dollar ($1 CAD).

With locations throughout Ontario, we offer a full range of financial products and services, all with a commitment to supporting the well-being of our members, employees and communities.
Since Alterna Savings is member-owned, our profits go right back into our operations so we can serve you and our communities better. It’s that simple, so you can feel good about investing in a financial institution that is 100% owned by its Members.

What’s unique about Alterna shares?

Alterna’s Class A Investment Shares, Series 5 are unique compared to common shares because:

  • Income earned is taxed as interest on Class A Investment Shares, Series 5; whereas common shares income is normally taxed as dividends.

  • There is no secondary market (stock market) where Class A Investment Shares, Series 5 can be traded.

  • Class A Investment Shares, Series 5 will have a fixed redemption value, unlike common shares which are valued by many variables of the market

What is the minimum and/or maximum amount of shares Members can purchase?

  • Members are required to purchase a minimum of $1,000 (1,000 shares) and are limited to a maximum of $200,000 (200,000 shares).

How long is the investment term?

  • Alterna’s Class A Series 5 Investment Shares do not have a defined term; if a Member does not wish to hold their Class A Series 5 Investment Shares any longer, they are limited to either redeeming or transferring their shares, subject to the following restrictions. The shares cannot be redeemed at the shareholder’s option until the fifth fiscal year following the fiscal year in which the shares were issued. Transfers of shares during this period are possible if Alterna Savings is able to find a buyer.

  • Members that wish to redeem their shares after the initial 5-year period from the date of issuance can only do so through a branch of Alterna. There is no secondary market for any of Alterna’s Class A Series 5 Investment Shares. Annual redemptions are limited to 10% of the amount of shares outstanding at the beginning of the year, and redemption requests above that limit will be carried forward to the following year. All redemptions and/or transfers must be approved by the Alterna Savings Board, subject to Applicable Law.

What is the dividend rate?

  • The minimum annual dividend rate is 4.00% for the first 5 years (if dividends are declared), prorated for the first year of issuance. For a full list of historical dividend rates please refer here.

  • Dividends (taxed as interest) are not guaranteed to be declared annually and are non-cumulative (meaning if they are not paid in a year they do not carry over to the next year).

How are the dividends issued?

  • If declared, dividends are paid to the holder of the shares on the dividend payment date in the form of cash, or potentially shares.

Are shares eligible to be held within registered savings plans?

  • Yes, Alterna’s Class A Series 5 Investment Shares are eligible for Registered Retirement Savings Plans (RRSP), Tax Free Savings Accounts (TFSA), as well as non-registered plans.

Still have questions?

For more information, please speak to an Alterna representative at our Contact Centre, visit any Alterna Savings branch, or email us. We'd be glad to help.

Dividends not guaranteed.

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